Source: Reuters

A federal appeals court temporarily reinstated the most sweeping of President Donald Trump’s tariffs on Thursday, a day after a U.S. trade court ruled that Trump had exceeded his authority in imposing the duties and ordered an immediate block on them.

The United States Court of Appeals for the Federal Circuit in Washington said it was pausing the lower court’s ruling to consider the government’s appeal, and ordered the plaintiffs in the cases to respond by June 5 and the administration by June 9.

Wednesday’s surprise ruling by the U.S. Court of International Trade had threatened to kill or at least delay the imposition of Trump’s so-called Liberation Day tariffs on imports from most U.S. trading partners and additional tariffs on goods from Canada, Mexico and China. The latter was related to his accusation that the three countries were facilitating the flow of fentanyl into the U.S.

The trade court’s three-judge panel ruled that the Constitution gave Congress, not the president, the power to levy taxes and tariffs, and that the president had exceeded his authority by invoking the International Emergency Economic Powers Act, a law intended to address threats during national emergencies.

Senior Trump administration officials had said they were undeterred by the trade court’s ruling, saying they expected either to prevail on appeal or employ other presidential powers to ensure the tariffs go into effect.

Trump has used the threat of charging U.S. importers costly tariffs for goods from almost every other country in the world as leverage in international trade talks, a strategy the trade court’s ruling would upend. The trade court ruling had not interfered with any negotiations with top trading partners that are scheduled in the days ahead, Trump’s administration said.

Trump himself wrote in a statement shared on social media that he hoped the U.S. Supreme Court would “reverse this horrible, Country threatening decision” of the trade court, while lambasting the judicial branch of government as anti-American.

“The horrific decision stated that I would have to get the approval of Congress for these Tariffs,” Trump wrote on Thursday evening. “If allowed to stand, this would completely destroy Presidential Power — The Presidency would never be the same! This decision is being hailed all over the World by every Country, other than the United States of America.”

Many U.S. trading partners offered careful responses. The British government said the trade court’s ruling was a domestic matter for the U.S. administration and noted it was “only the first stage of legal proceedings.” Both Germany and the European Commission, the European Union’s executive arm, said they could not comment on the decision.

Canadian Prime Minister Mark Carney said the trade court’s finding was “consistent with Canada’s longstanding position” that Trump’s tariffs were unlawful.

Financial markets, which have whipsawed in response to the twists and turns in Trump’s chaotic trade war, reacted with cautious optimism to the trade court ruling, though gains in stocks on Thursday were largely limited by expectations that the court’s ruling faced a potentially lengthy appeals process.

Indeed, analysts said broad uncertainty remained regarding the future of Trump’s tariffs, which have cost companies more than $34 billion in lost sales and higher costs, according to a Reuters analysis.

“The horrific decision stated that I would have to get the approval of Congress for these Tariffs,” Trump wrote on Thursday evening. “If allowed to stand, this would completely destroy Presidential Power — The Presidency would never be the same! This decision is being hailed all over the World by every Country, other than the United States of America.”

Many U.S. trading partners offered careful responses. The British government said the trade court’s ruling was a domestic matter for the U.S. administration and noted it was “only the first stage of legal proceedings.” Both Germany and the European Commission, the European Union’s executive arm, said they could not comment on the decision.

Canadian Prime Minister Mark Carney said the trade court’s finding was “consistent with Canada’s longstanding position” that Trump’s tariffs were unlawful.

Financial markets, which have whipsawed in response to the twists and turns in Trump’s chaotic trade war, reacted with cautious optimism to the trade court ruling, though gains in stocks on Thursday were largely limited by expectations that the court’s ruling faced a potentially lengthy appeals process.

Indeed, analysts said broad uncertainty remained regarding the future of Trump’s tariffs, which have cost companies more than $34 billion in lost sales and higher costs, according to a Reuters analysis.

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